Comparing the first half of 2008 with the same period this year, we can at least deduce that people are not drowning their economic worries in Hennessy, Krug, Moët or Yquem. Apparently LVMH say that their profits increased “tangibly” in the markets where they control their own distribution, such as ‘owned’ shops like Louis Vuitton:
“The brands distributed by third parties, on the other hand, suffered a massive destocking impact by these (external) distributors. This is notably the case for the Wines & Spirits and Watches & Jewelry business groups.”
Interesting; so that means that non LVMH companies are tightening their belts in what some would describe as prudent management but LVMH companies are not. Does that mean that in the opinion of LVMH, punters are having to queue for Moët because retailer’s inventory is too low?